Correlation Between Guangzhou Zhujiang and Henan Shuanghui
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Henan Shuanghui Investment, you can compare the effects of market volatilities on Guangzhou Zhujiang and Henan Shuanghui and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guangzhou Zhujiang with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Henan Shuanghui.
Diversification Opportunities for Guangzhou Zhujiang and Henan Shuanghui
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Henan is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve and Guangzhou Zhujiang is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guangzhou Zhujiang Brewery are associated (or correlated) with Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Henan Shuanghui
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 1.1 times more return on investment than Henan Shuanghui. However, Guangzhou Zhujiang is 1.1 times more volatile than Henan Shuanghui Investment. It trades about 0.08 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.02 per unit of risk. If you would invest 971.00 in Guangzhou Zhujiang Brewery on December 26, 2024 and sell it today you would earn a total of 53.00 from holding Guangzhou Zhujiang Brewery or generate 5.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Henan Shuanghui Investment
Performance |
Timeline |
Guangzhou Zhujiang |
Henan Shuanghui Inve |
Guangzhou Zhujiang and Henan Shuanghui Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Zhujiang and Henan Shuanghui
The main advantage of trading using opposite Guangzhou Zhujiang and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Henan Shuanghui can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.Guangzhou Zhujiang vs. Meinian Onehealth Healthcare | Guangzhou Zhujiang vs. China World Trade | Guangzhou Zhujiang vs. Shanghai Lujiazui Finance | Guangzhou Zhujiang vs. Harvest Fund Management |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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